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Dubai real estate: The rate of capital growth for apartments is nearing that of villas

ValuStrat study shows Dubai’s Discovery Gardens apartment had the highest annual capital growth of 32.6%, followed by The Greens (29.8%)

A report published by international consulting firm ValuStrat on Dubai residential capital values has revealed that the rate of capital growth in the apartment market is steadily approaching that of the villas.

This was part of the company’s finding published in its March 2024 report, ‘ValuStrat Price Index (VPI) – Dubai Residential Capital Values’.

Overall, the VPI reached 167.5 points during the month, marking an increase of 24.7 per cent annually and 2.1 per cent monthly. Villas reached 211 points, while apartments stood at 139.2 points, compared to the baseline of 100 points set in January 2021.

Apartment prices rose by 1.9 per cent month on month, marking a record annual growth of 20.1 per cent. Comparatively, villa capital gains were at 2.4 per cent compared to February and 29.6 per cent since the previous year.

Discovery Gardens showed the highest apartment capital growth in the last year, rising 32.6 per cent. This was followed by The Greens (29.8 per cent), Palm Jumeirah (29 per cent), The Views (24.8 per cent), and Town Square (24.5 per cent).

With a VPI base price of 100 in January 2021, the highest rate of growth has been in Palm Jumeirah apartments, which have increased 83.6 per cent, followed by The Greens (55.2 per cent) and Jumeirah Beach Residence (52 per cent).

Villas in highly sought-after areas like Palm Jumeirah and Jumeirah Islands continue to show a high rate of growth, both up 37.7 per cent compared to last year. They were followed by Dubai Hills Estate (34.8 per cent), Mudon (30.2 per cent), and Arabian Ranches (29.2 per cent).

The highest rate of growth in villas since January 2021 was in the Jumeirah Islands (143.5 per cent), followed by Palm Jumeirah (125.7 per cent).

There were 15 transactions for ready properties priced over AED30 million ($8.17 million). These villas are situated in Palm Jumeirah, Dubai Hills Estate, Jumeirah Golf Estates, Emirates Hills, and Jumeirah Bay Island.

Annually, off-plan Oqood (contract) registrations increased by 14 per cent, with a monthly growth of 18.2 per cent. Emaar (14.9 per cent) had the highest share of Oqood transactions during March 2024. It was followed by Damac (10.9 per cent), Azizi (6 per cent), and Sobha (5.6 per cent) led the developer sales charts overall.

Top off-plan locations transacted included projects in Jumeirah Village Circle (10.9 per cent), Zabeel First (6 per cent), Meydan One (5.7 per cent), and Business Bay (5.6 per cent). Jumeirah Village Circle (9.3 per cent) led in the sales of ready homes, followed by Business Bay (7.4 per cent), Dubai Marina (6 per cent) and Downtown Dubai (5.3 per cent).

The ValuStrat Price Index for Dubai’s residential capital values is a valuation-based index constructed to represent periodic changes in capital and rental values experienced by typical residential units within the city. The VPI for Dubai’s residential capital values is updated monthly, while the VPI for Dubai’s residential rental values is updated quarterly.

 For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - March 2024